“Removing Roadblocks on Your Path to Success”
Closing the Books on 2013
Happy New Year! Though 2013 has ended, we can’t simply leave it behind, at least not just yet. To fully close the books on 2013, “year-end” procedures should be performed and new systems implemented for the new year.
In our final article for the year, Mastering Your Year-end Processes, we created a checklist that highlights the most important tasks to complete when closing your books on the previous business year. Besides cleaning up the books, you’ll also want to review the annual Profit & Loss and Balance sheets thoroughly to ensure that each line item is clear and accurate. A CPA is an invaluable resource for maximizing our deductions and minimizing the amount owed for taxes. To make the best use of your CPA, prepare your financial statements and send them early, allowing for plenty of time to answer any questions that may arise in reviewing those documents. Go through your Accounts Payable and identify any independent consultants or companies that may require 1099 reporting. January 31st is quickly approaching. All 1099’s should be prepared and in the mail before that important date to avoid any possible penalties for late filing.
A new year should start with a clean slate, and that includes a clean chart of accounts in the accounting software and empty drawers in the filing cabinet. Make back-up copies of your accounting software files, and transfer all 2013 documents to a safe and easily accessible place for storage, in case there is a need to access them in the future.
A new year also creates an opportunity to learn and benefit from the experiences of the previous year. Having a strategy session with your team will allow you to discuss ways to better leverage your time and space, streamlining processes for the future. A few examples include moving the storage of receipts and statements to an electronic system to free up precious real estate in filing cabinets or implementing service like http://bill.com for Accounts Payable and storage of bills. How productive was last year? How do you evaluate your team? If one has not been created, consider implementing a Key Performance Indicator Report. Our template can be used as a guide and customized as necessary. Review the chart of accounts with your controller to determine if the method of tracking data is sufficiently detailed. Identify areas in your 2013 budget that must be addressed, and based on assumptions for the new year, create a new budget to follow in 2014. And if your current payroll system is more trouble than it is worth, now is the time to switch to one that is user friendly and allows easy connection to your accounting software.
Starting a new year may seem overwhelming, but we are here to support you. Keep these tips in mind and you are off to a great start for a more productive and abundant 2014.
And finally, we are excited to announce the Marin Business Forum was another great success. Over 100 attendees gathered to hear Ultra-Marathon-Man, Dean Karnazes, speak on how pushing his physical limits have made him a business success.
Announcement: Compliance in 2014: Thursday, February 6th, 8am – 12 noon
Join us with Filice Insurance for a seminar to discuss the new laws and current court decisions and ensure compliance with the latest developments.
Until next month, we wish you happy holidays and much success in your business.
March 2011 Newsletter
This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
Copyright 2013, Pacific Crest Group, All rights reserved.